Former Bank of Korea Governor Lee Chang-yong has stated that the public should not be overly concerned about short-term fluctuations in the South Korean won, as the nation's economy has undergone structural changes that make the currency more resilient than ever before. In an interview on Wednesday, Lee remarked, "We are no longer a net debtor nation in international markets but a net creditor nation, so the situation has changed. When the exchange rate moves to a certain level, we do not need to panic."

The won experienced several rounds of weakening during the first half of the year, drawing attention to South Korea's external financial position. Earlier this year, the currency fell to its lowest level since 2009, prompting authorities to issue multiple warnings about excessive exchange rate volatility. As part of their response, officials attempted to curb capital outflows amid a surge in retail investors channeling funds into overseas assets. Since then, the won has rebounded and become one of Asia's best-performing currencies.

"In my previous role, I could not say such things publicly because people would think the central bank governor was willing to tolerate a weaker won," Lee said. He then quipped, "Now the situation is actually much better, so I am a bit envious of my successor."

When asked about the recent joint effort by the United States and Japan to support the yen, Lee expressed surprise that European nations were excluded from the discussions and called for enhanced policy coordination. "Because the international capital market is so large, I believe that even major powers cannot address these issues alone," he stated. He emphasized that South Korean authorities must adopt a different strategy.

"For a small economy like ours, I think policymakers must remain humble," Lee said. "All I can do is smooth out market volatility, but I cannot dictate the direction of the exchange rate. Only fundamental policy adjustments can achieve that."

In August, the Bank of Korea raised interest rates for the second consecutive meeting to intensify its fight against inflation, driven by stronger-than-expected economic growth fueled by an unprecedented semiconductor boom. Lee declined to comment on the potential path of the policy rate but noted that monetary policymakers are likely to weigh the situation in Iran, the government's expansionary fiscal policy, and the upcoming U.S. midterm elections as key considerations.

"Even if the semiconductor cycle persists, heightened trade policy tensions between South Korea and the U.S. would have negative effects and could impact inflation differently," he concluded.